Looking for thoughts on a deal I am working on.

[Chris Webb]

Hi All, I am looking for some thoughts on a deal I am working on. The property is a 6 unit building with 4 living units and 2 commercial units. Below is the input from my spreadsheet. Taxes are from the assessors website, insurance is a monthly estimate. 2nd is seller financing interest only for 5 years. Let me know what you think. Thanks! 

Price	$ 1,000,000.00
Down	$ 100,000.00
1st	$ 500,000.00
Payment	4,113.38
Rate	9.25%
2nd	$ 400,000.00
rate	1%
2nd Payment	333.33
total PI	$ 4,446.71
Taxes	$ 2,500.00
Insurance	$ 375.00
Total PITI	$ 4,686.29
Monthly rents	$ 7,200
Rents	$ 86,400.00
Monthly spread	$ 2,513.71
Yearly Spread	$ 30,164.48	Monthly Costs and profit/loss
		$ 4,686.29 - costs
Yearly PM	$ 8,640.00	$ 720.00 - costs
Yearly Vac.	$ 4,320.00	$ 360.00 - costs
Yearly Repairs	$ 4,320.00	$ 360.00  - costs
Yearly profit	$ 12,884.48	$ 1,073.71- monthly profit
NOI	$ 69,120.00
debt	$ 56,235.52
Total costs M	$ 5,766.29
Total costs Y	$ 69,195.52
COC return	12.88%
Cap	6.91%
DSCR	1.23